HP, MICROSOFT TO OPTIMIZE CLIENT-SERVER COMPUTING SOLUTIONS BUILT ON
WINDOWS NT SERVER, HP X86-BASED SYSTEMS

Palo Alto, California. May 22, 1995 -- Hewlett-Packard Company and
Microsoft today announced they plan to work together on the development,
marketing and support of high-performance servers, networks and management
products for the corporate marketplace based on Windows NT Server. As a
result of this plan, customers will be able to employ Microsoft and HP
x86-based products optimized to work together in client-server computing
environments and receive support from HP's worldwide support
organization.

"We are committed to providing our customers with the products and services
they need to take full advantage of client-server technology," said
Richard (Rick) E. Belluzzo, HP senior vice president and general manager
of the Computer Products Organization. "By optimizing our products for
Windows NT Server, our customers are assured of a powerful, cost-effective
platform for their applications backed by HP's support commitment."

The joint efforts between the companies include the following:

** performance optimization of HP Intel-based NetServers with Microsoft
Windows NT Server and MicrosoftBackOffice products, providing customers
with apowerful, reliable and scaleable server platform;

** extension of HP's Windows NT support offering to include comprehensive
support services for MicrosoftBackOffice. HP is one of three worldwide
MicrosoftAuthorized Support Centers and provides corporatecustomer service
and support on Microsoft products. HPhas 35 response-center locations and
600 field officesworldwide for immediate response at any time;

** participation by HP in the Microsoft Solution Server Program. Through
this program, Microsoft and HP teamtogether to provide selected customers
with a chance to"test drive" an HP NetServer running Microsoft WindowsNT
Server and Microsoft BackOffice products;

** increased interoperability between HP 100VG AnyLAN networking products
and Microsoft Windows NT. 100VG isa high-performance (100 megabit/sec)
networkingstandard that reduces network bottlenecks and enablescustomers
to take advantage of high-bandwidthapplications such as video
teleconferencing or multimedia. HP also will work with Microsoft on common
APIs for new high-performance network links, such as100VG and ATM;

** expanded integration of HP OpenView for Windows network management
products with Microsoft Systems ManagementServer to provide a total
management solution. HPOpenView is the industry's leading
network-managementplatform, and Microsoft Systems Management Server isone
of the most comprehensive solutions for managingnetworked PCs; and

** initiation of joint sales, marketing and training efforts to support
customer and channel implementationof HP and Microsoft-based solutions.

"We're pleased to be teaming with HP to build on Windows NT Server with the
hardware, network and management services that corporate customers need,"
said Jim Allchin, senior vice president of the Business Systems Division
at Microsoft. "By working closely together throughout our products'
design, development and implementation, we can provide our customers with
a truly integrated and well-supported client-server platform upon which to
run their enterprise computing solutions."

Customers already have seen the benefits of the HP and Microsoft
relationship.

"We needed a solution for our specific network needs that was clear in its
implementation, easy to run and utterly reliable, and the HP/Microsoft
combination meets that criteria," said Chuck Rosengard, director of
technology for the Kern County High School District in California. "We are
very pleased to see that these individual market leaders are working
together to enhance their excellent offerings."

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.

Hewlett-Packard Company is a leading global manufacturer of computing,
communications and measurement products and services recognized for
excellence in quality and support. HP has 98,600 employees and had revenue
of $25 billion in its 1994 fiscal year.

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